Top Financial Goals You Need To Have In Your 20s & 30s
Nielson has recently published a report titled Global Survey of Saving and Investment Strategies aimed at understanding how residents from all over the world view their current and future finance expenses.
35% of Singaporeans are reported to have expressed their pessimism in meeting their future financial goals. This is higher than the global aggregate of 28%.
This pessimism may be alleviated if the goals are clearly defined and managed from as young as possible.
With these, we have short-listed the top financial goals that Singaporeans should aim for.
Short-term
Gain control over every day expenses
A wise saying teaches us the importance of mastering the little before being responsible with much. Similarly, the management of one’s own personal finances is crucial. Some of the pointers to look out for include budgeting for one’s day to day expenses to ensure that there are savings.
Be debt-free
A shift towards a knowledge-based economy would mean a higher proportion of tertiary or other forms of higher education. Debts will definitely be incurred. With the accumulation of interests, one should strive to pay off all educational debts during the first few years of corporate life.
Be credit positive
In preparation for future servicing of larger ticketed items, it is important that we are on track to achieving credit worthiness. This is crucial because it determines our future borrowers’ risk assessment of us; hence affecting our application for loans, insurance and even job applications.
Mid-term
Build your own assets
This is a strategy for building multiple income streams. It alleviates the reliance on one’s job, and even allows for the possibility of an early semi-retirement. In other words, there is no need to feel that you are chained to your desk.
Be an active investor
Start building your portfolio, and use it for both short-term and long-term gains. Gain financial literacy by being active in investing. As Warren Buffet said, “Risk comes from not knowing what you are doing”. As long as the investment risks are considered wisely, investing can bring about a substantial amount of profits.
Be covered by an insurance plan
Life is not a bed of roses, and it is only common sense for us to expect the unexpected. This is not only a self-protection measure, but also a way to protect one’s loved ones.
Long-term
Plan for your children’s expenses
With offspring comes responsibilities. No longer are we just concerned with providing for our children with the basic necessities. Today, there is more hype concerning the preservation of family wealth. This may not necessarily mean that parents are spoiling their children. Rather, when used carefully, it can mean an open door for more opportunities.
Start your retirement plan
Singaporeans do have CPF but this is never enough if you want a stress-free retirement. Set your goals, work towards it and make changes according to economic shifts. Lastly, maintain consistency in making this plan work.
Be financially free
Achieving financial freedom is common saying we hear today. But what exactly does this entails? It is having your assets outweigh your expenses, and most importantly, your assets allow you to be self-sustainable. Psychologically, it means that you will not have to fear for the loss of job because you have sufficient personal wealth and passive income.
read more
35% of Singaporeans are reported to have expressed their pessimism in meeting their future financial goals. This is higher than the global aggregate of 28%.
This pessimism may be alleviated if the goals are clearly defined and managed from as young as possible.
With these, we have short-listed the top financial goals that Singaporeans should aim for.
Short-term
Gain control over every day expenses
A wise saying teaches us the importance of mastering the little before being responsible with much. Similarly, the management of one’s own personal finances is crucial. Some of the pointers to look out for include budgeting for one’s day to day expenses to ensure that there are savings.
Be debt-free
A shift towards a knowledge-based economy would mean a higher proportion of tertiary or other forms of higher education. Debts will definitely be incurred. With the accumulation of interests, one should strive to pay off all educational debts during the first few years of corporate life.
Be credit positive
In preparation for future servicing of larger ticketed items, it is important that we are on track to achieving credit worthiness. This is crucial because it determines our future borrowers’ risk assessment of us; hence affecting our application for loans, insurance and even job applications.
Mid-term
Build your own assets
This is a strategy for building multiple income streams. It alleviates the reliance on one’s job, and even allows for the possibility of an early semi-retirement. In other words, there is no need to feel that you are chained to your desk.
Be an active investor
Start building your portfolio, and use it for both short-term and long-term gains. Gain financial literacy by being active in investing. As Warren Buffet said, “Risk comes from not knowing what you are doing”. As long as the investment risks are considered wisely, investing can bring about a substantial amount of profits.
Be covered by an insurance plan
Life is not a bed of roses, and it is only common sense for us to expect the unexpected. This is not only a self-protection measure, but also a way to protect one’s loved ones.
Long-term
Plan for your children’s expenses
With offspring comes responsibilities. No longer are we just concerned with providing for our children with the basic necessities. Today, there is more hype concerning the preservation of family wealth. This may not necessarily mean that parents are spoiling their children. Rather, when used carefully, it can mean an open door for more opportunities.
Start your retirement plan
Singaporeans do have CPF but this is never enough if you want a stress-free retirement. Set your goals, work towards it and make changes according to economic shifts. Lastly, maintain consistency in making this plan work.
Be financially free
Achieving financial freedom is common saying we hear today. But what exactly does this entails? It is having your assets outweigh your expenses, and most importantly, your assets allow you to be self-sustainable. Psychologically, it means that you will not have to fear for the loss of job because you have sufficient personal wealth and passive income.
read more
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